3.4 Explain AI Governance Considerations (policy, Risk Management, Compliance) AI-TECHNICAL-PRACTITIONER Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   Which of the following is an example of a technical risk associated with an AI system?

   • AThe organization lacks a clear policy for AI use
   • BThe AI project exceeds its budget
   • CThe AI system's deployment leads to public criticism
   • DThe model produces biased outputs due to skewed training data
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2. 2foundation · easy

   What is the primary role of executive leadership in AI governance?

   • ATo label training data for machine learning models
   • BTo write the code for AI models
   • CTo audit AI systems for compliance with regulations
   • DTo provide strategic direction and ensure AI initiatives align with organizational goals and values
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4. 3expert · hard

   A medical device manufacturer is integrating an AI diagnostic tool into its product. The tool is developed by a third-party vendor. The manufacturer must ensure compliance with medical device regulations (e.g., FDA, MDR) and manage the risk of the vendor's model failing. Which governance action is most critical?

   • ADefer all responsibility to the vendor since they developed the model.
   • BRequire the vendor to sign a liability waiver.
   • CRely on the vendor's claims that the model is safe and effective.
   • DEstablish a formal vendor risk management process that includes model validation and ongoing monitoring.
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5. 4application · medium

   A manufacturing company is adopting AI for predictive maintenance. The company has no existing AI governance framework. The executive team wants to ensure that AI projects align with business goals and ethical standards. What is the first step they should take?

   • APurchase AI software and begin a pilot project immediately.
   • BEstablish an AI governance committee with representatives from IT, legal, operations, and executive leadership.
   • CHire a data scientist to lead all AI initiatives.
   • DWrite a detailed AI policy before involving any stakeholders.
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6. 5expert · hard

   A bank is using an AI system to detect money laundering. The system flags suspicious transactions, but it also generates many false positives, overwhelming the compliance team. The bank is considering adjusting the system's threshold to reduce false positives. However, this may increase the risk of missing true positives. What is the most appropriate governance action?

   • ADisable the AI system and rely on manual review.
   • BImmediately lower the threshold to reduce false positives and ease the compliance team's workload.
   • CKeep the current threshold and hire more compliance staff.
   • DConduct a risk assessment to understand the trade-off between false positives and false negatives before making any changes.
   Reveal Solution Discussion Select an answer first